Class 23 and 24

Intellectual Property Rights
Saturday, 19 March 2016 1

Intellectual property (IP)
• Intellectual property (IP) is a term referring to creations of the intellect
for which a monopoly is assigned to designated owners by law.
• Some common types of intellectual property rights (IPR) are
trademarks, copyright, patents, industrial design rights, and in some
jurisdictions trade secrets: all these cover music, literature, and other
artistic works; discoveries and inventions; and words, phrases,
symbols, and designs.

Intellectual Property
• Intellectual Property is a property that arises from the human intellect. It
is a product of human creation.
• Intellectual Property is the creation of the human intellectual process
and is therefore the product of the human intellect or mind.

Intellectual Property
• It is an intangible form of property.
• It is a personal property.
• It is a basic form of property.
• It is based on information.

Protected Intellectual Property
• Invention by a patent or as trade secret.
• Utility models by a certificate or secret.
• Industrial Design by a certificate.
• Trade and Service Mark by a certificate.
• Copyright by reducing to a fixed form.

Types of intellectual property
• Copyright
• Copyright is a legal term used to describe the rights that creators have
over their literary and artistic works.
• Works covered by copyright range from books, music, paintings,
sculpture and films, to computer programs, databases, advertisements,
maps and technical drawings.

• Patents
• A patent is an exclusive right granted for an invention.
• Generally speaking, a patent provides the patent owner with the right to
decide how - or whether - the invention can be used by others. In
exchange for this right, the patent owner makes technical information
about the invention publicly available in the published patent document.

• Trademarks
• A trademark is a sign capable of distinguishing the goods or services of
one enterprise from those of other enterprises. Trademarks date back
to ancient times when craftsmen used to put their signature or "mark"
on their products.

• Industrial designs
• An industrial design constitutes the ornamental or aesthetic aspect of
an article.
• A design may consist of three-dimensional features, such as the shape
or surface of an article, or of two-dimensional features, such as
patterns, lines or color.

• Geographical indications
• Geographical indications and appellations of origin are signs used on
goods that have a specific geographical origin and possess qualities, a
reputation or characteristics that are essentially attributable to that
place of origin.
• Most commonly, a geographical indication includes the name of the
place of origin of the goods.

World IP Day
• On April 26 every year we celebrate World Intellectual Property Day to
promote discussion of the role of IP in encouraging innovation and
creativity

E- Governance

Electronic governance
• Electronic governance or e-governance is the application of information
and communication technology (ICT) for delivering government
services, exchange of information communication transactions,
integration of various stand-alone systems and services between
government-to-customer (G2C), government-to-business (G2B),
government-to-government (G2G) as well as back office processes and
interactions within the entire government framework.

Difference between E-Government and E-Governance
• Both terms are treated to be the same, however, there is some
difference between the two.
• "E-government" is the use of the ICTs in public administration -
combined with organizational change and new skills - to improve public
services and democratic processes and to strengthen support to public.
• The problem in this definition to be congruence definition of e-
governance is that there is no provision for governance of ICTs.

Components Of E-governance
• Technological Component
• Social Component
• Cultural Component
• Political Component
• Psychological Component:
• Service Component

Types of Interactions in e-Governance

Benefits Of E-Governance
• Better access to information and quality services for citizens.
• Simplicity, efficiency and accountability in the government.
• Expanded reach of governance.

Emerging Trends in
Ecommerce

Saturated price race will begin
• For products that can be easily compared with others without the need
for any physical inspection and are easy to ship and distribute, the
lowest prices will decide the winners.

Consumers will go global
• Significantly larger numbers of consumers will start buying from foreign
country websites, creating a problem for local and domestic merchants.
On the other hand, such merchants can potentially start selling
overseas themselves.
• Thus, ecommerce vendors who can expand their reach beyond the
local and domestic boundaries will emerge as big winners.

Marketing will get more personalized, driven by big data
• An increasing number of ecommerce vendors will start tapping into big
data (and other available resources) to deliver a highly personalized
shopping experience to visitors.

Corporations will get personal too
• In keeping with the trend #3 above, corporates will shed their gray suits
to mix and socialize with online visitors and customers.
• Only time will tell how successful they will be at this encroachment
upon this turf that has been hitherto reserved largely for the small
ecommerce vendors.
• Nevertheless, small e-tailors would do well to prepare themselves to
face this ‘invasion’.

Mobile buying and marketing will increase
• With ever increasing numbers of people (including shoppers and
buyers) accessing the Internet via smartphones, tablets and other
mobile devices for various reasons and purposes including making
purchases, ecommerce sites will go ‘mobile-friendly’.
• Online stores not capable of operating well on mobile devices will lose
visitors, customers and revenues, while the ones that work well with
mobiles will thrive and prosper.

Video-based marketing and buying will explode online
• As it becomes evident to more and more online stores and vendors that
video marketing – the nearest contender to the in-store experience for
prospective buyers – leads to much higher conversions, more and
more online stores will create and integrate (product) videos on their
sites.

Ecommerce coding/designing and copywriting will
become (strange) bedfellows
• More textual content – content that is original and persuades a visitor to
become a buyer – on web pages tend to bring more organic (read free)
traffic to such pages via the search engines, leading to more sales for
ecommerce sites.
• Increasing awareness of this marketing advantage will lead more e-
stores to incorporate more copy (text) on their site and product pages.
Those who do will prosper, those who don’t will lose.

Multi-dimensional social networking services will grow
more popular
• Social networking services that allow users to communicate – and
share information – using more methods and channels of
communication will gain more popularity.
• Ecommerce sites having strong presence on such networks will
prosper while the other ones will fall behind in terms of business
volumes, or stagnate at best.

Online storytelling to boost sales will rise
• Storytelling has always been a great way of selling. As more
ecommerce vendors discover this, more of them will incorporate stories
around their products, by way of written text or videos on their online
stores.
• Those ecommerce sites that recognize and seize the opportunity of
digital storytelling will see higher sales graphs while those who don’t
will be at a loss.

Niche based content targeting will gain momentum
• As increasing numbers of ecommerce vendors realize that more sales
can be achieved by placing content on their site and product pages that
appeals to a particular market niche, more of them will start practicing
this.
• While crystal-ball gazing is best left to the gypsy ladies, every single
one of the future trends mentioned above has been based on the
findings of sound scientific and market research conducted by reliable
sources.

E-Business off the Ground

The Entrepreneurial Process

Start-up Financing
• As an entrepreneur starting a new e-business, you must be prepared to
invest time, effort, and your own money to get your new e-business off
the ground.

Personal Assets
• Sweat Equity: putting in time and effort
• Mortgage Personal Assets: put up property as collateral to a bank
• Personal loans: taking a loan without collateral (higher interest rate)
• Credit card/credit line advance: similar to a personal loan (usually a
high interest rate)

Friends and Family
• Friends and family investors are family members or friends who invest
in a business.
• Many entrepreneurs successfully solicit startup money from their
network of friends and family.

Friends and Family (cont’d)
• A network of potential friends and family investors extends beyond
immediate family members and friends, to their families and friends, to
their families and friends, and so on.
• Advantages?
• Disadvantage?

Angel Investors
• The term angel investor originally referred to wealthy investors in
Broadway theatrical productions
• In this context it refers to any individual with the assets and interest to
invest in a startup business
• Not the same as a Venture Capitalist
• May be members of an Investment club

“Touched by an Angel”
• Angels can be difficult to find.
• Angels sometimes appear unexpectedly.
• The keys are networking and research.
• Usually provide small-medium investments
– $10,000 up to $300,000
– May want to become involved in the business
– May want an equity position in the business

Venture Capital Investors
• Venture Capital (VC) firms are organized to invest specifically in new
business startups.
• Typically take a significant equity interest (perhaps 20-40%) in the firm
with in exchange for providing startup capital.

Venture Capital Investors
• May also provide expertise
• Typically do not invest for the long term but expect to “cash out” after
the business establishes a successful track record and can be sold or
acquired by others
• There are many established VC firms

Business Incubators
• Have traditionally been government- or university-supported nonprofit
organizations that nurture new businesses
• Provide startup companies with management advice, office space,
networking opportunities, and other critical startup services

Commercial Business Incubators
• Offer startup e-businesses access to the same services offered by
nonprofit incubators
• Are primarily interested in high-technology businesses that can become
financially viable quickly and leave the incubator within six months to a
year

Incubators
• May take an equity interest as well as charge for services
• Not-for-profit incubators may use returns from equity to reinvest

Term Sheet
• List of the major points of the proposed financing being offered by the
investor, and is used to start negotiations for the investment deal
• Example:
– Invest $200,000 for 10% equity, then the investor values your e-business at $2
M
• May include other demands
• Have reviewed by a qualified attorney

Building Your E-Business

Understanding Legal Issues
• One of the first things an e-business entrepreneur should do is
establish a relationship with an attorney experienced in business
startups and, if possible, with e-business startups.
• E-businesses may be more complex legally as their business moves
across jurisdictional boundaries, even internationally.

Copyrights and Trademarks
• A copyright is a form of protection for the author of published or
unpublished original work, including writing, drama, music, art, and
other intellectual property.
• A trademark is a distinctive symbol, word, or phrase used to identify a
product and distinguish it from products of another business.
• A business guards its own copyrights and trademarks, and needs
permission to use those belonging to others.

Content Liability
• An e-business may be exposed to potential liabilities for defamation,
label, copyright infringement, obscenity, indecency, and other liability,
on the basis of the content and hyperlinks at its web site.
• To protect against potential lawsuits, an e-business should have its
attorney draft an appropriately worded disclaimer of liability to be
posted on its web site.

Information Privacy
• Potential customers may be hesitant to purchase products or services
online or to provide valid information, for fear that the information will
be misused or sold to others.
• An e-business should have a clear policy on how it handles and
secures the information it collects at its web site.

Taxation
• Taxation is a complex issue.
– The collection of sales and use taxes is a state matter and varies as to
jurisdiction.
• The Internet tax freedom act, originally passed by congress in 1998
and recently extended to 2006, places a moratorium on new internet
taxes.
• An e-business should establish a relationship with an experienced
attorney to help sort through the legal and tax issues it faces.
• Tax Facts

Leasing Commercial Office Space
• Many startup e-businesses begin at an entrepreneur’s kitchen table
and quickly expand to temporary office space, often a spare room.
• Signs that an e-business has outgrown its temporary home office space
include:
– The need to add employees, a need for more storage
– Insufficient electrical outlets
– Insufficient phone lines
– A need to add telecom services
– The need for more office equipment

Facilities Plan
• The amount of space you need now and in the near future
• How space is to be divided into offices or work areas
• Requirements for electrical wiring infrastructure
• Telecommunications and other office equipment needs
• Amenities such as break rooms, reception areas, conference rooms,
and elevators

Facilities Plan (cont’d)
• Physical location of facilities, including exterior appearance, access to
adequate parking, and access to nearby businesses that employees
could patronize, such as restaurants and childcare centers
• Facilities’ proximity to major roads and public transportation
• Facilities’ proximity to a pool of qualified prospective employees
• Security requirements
• Property damage and liability insurance requirements

Hiring Employees
• The key to success for any business is its people.
• A key issue for a startup is hiring.
– Chief technologist
– Chief financial officer
– Marketing
– Staff
– Some VC’s require that firm hire Other Senior management with “experience”
• Must be concerned with the “burn rate”

Hiring Employees (cont’d)
• Issues for hiring:
– Compensation
– Salary
– Perks – such as?
– Stock options / equity
• Evaluation of fit with firm
• Attracting qualified individuals to work at a startup firm

Building Your Brand
• A brand is a combination of name, logo, and design that identifies a
business’s products or services and differentiates the products and
services from those of competitors
• Begins with the selection of a name; make it memorable. i.e. Dell
Corporation or Ask Jeeves
• May use a reference to Web, Cyber, Net, etc. in name
• Consider a consultant

Domain Names
• Identifies the firm on the Internet
• May use all or a portion of the firm’s actual name
• Obtain domain name from an ICANN accredited name registrar
• Someone else may own the rights to the name
• You may register your name and variations of it.
• You may also want to register the alternate top level domains (.Com,
.Net, .Org, and others) to preserve your rights and brand identity.

Selecting the Technology
• An entrepreneur must make many technology decisions.
• Software must be selected to handle sales transactions, inventory
monitoring, accounting, and internal record keeping.
• The e-business must decide whether to develop the e-business’s
computer systems and web site internally, or to outsource these
functions.

ERP Systems
• Enterprise resource planning (ERP) refers to a system that integrates
all aspects of a business, including planning, manufacturing, human
resources, accounting, finance, sales, and marketing.
• ERP systems are usually built on top of databases that store all of the
data needed by the different systems.

Customer Relationship Management Systems
• Customer relationship management (CRM) systems, sometimes called
e-CRM systems, use software and the Internet to help an enterprise
manage its customer base

Data Mining
• Making data work
• Finding interesting statistics & correlations (hidden patterns) that can
help a business better attract & sell to customers
– Ex. 60% buy A also buy B
• Data warehouse
– Database that contains huge amounts of data, such as customer or sales data
– Terabytes of data – Blockbuster (p. 207), reel.com (p. 209)
• Web mining
– Same as data mining, except data from web sources

Independent Software Vendors
• Independent software vendors (ISVs) are companies that develop and
sell software applications for a variety of operating system platforms
such as Microsoft, Apple, IBM, and Hewlett-Packard.

Value Added Reseller (VAR)
• A value-added reseller (VAR) is a company that modifies an existing
software product by adding its own “value,” such as a special computer
application, and then resells the software as a new product or software
package.
• MicroAge, ASG, Merisel

Technology Service Providers
• There are many different kinds of technology service providers
available to a startup e-business.
• These different service providers offer a range of overlapping services
and are known by an array of confusing acronyms
– Internet Service Providers
– Internet Access Providers (same as ISP)
– Web Hosting Companies (2000 $1.8 billion industry)
– Application Service Providers (PeopleSoft example)
– System and Web Integrators

Launching Your E-Business

Beta Testing Your Web Site
• Software companies allow users to test their software programs before
selling them to the public, in order to find problems in the software.
• Testing its Web site with a beta launch is a good idea for an E-
Business.
• By allowing visitors to test its Web site before marketing it to the public,
an E-Business can get feedback and make changes.

Marketing an E-Business
• The early approach to marketing E-Businesses was, “If we build it, they
will come.”
• Today, this approach is not effective.
– “A web site is like a brick-and-mortar store built on a dead-end street with few
people driving by”
• Most conventional marketing approaches are useful to the E-Business.
• Some techniques and methods are unique to the E-Business
environment.

Search Engines and Directories
• The reality of Web marketing:
– Despite all marketing expenses, most viewers locate relevant Web sites through
the use of search engines and directory services.
– 81% of those surveyed found sites this way
• Spiders – software programs that automatically update a search
engine’s indexes of Web pages by examining existing pages across the
Web

Search Engines
• Use a variety of methods to gather and index information.
• This process may take time due to the volume of materials to be
examined.
• Some services accept submissions
• Some may require a fee to review and index quickly.

Indexing Methods
• Different search engine sites use differing indexing techniques.
• This is why two different engines produce vastly different results at
times.
• Adding “Meta Tags” that accurately describe the content is important.
• These tags are used by some indexing systems to help build their
indexes.

Techniques to Improve Index “Hits”
• Write clear but descriptive Web page text that a search engine can
index.
• Avoid using frames, or have an alternate no-frames site to help search
engine spiders locate all Web pages at a Web site.
• Use static HTML pages for products that can be indexed by search
engines, instead of active pages that are generated by the server from
data in a product database.

Techniques to Improve Index “Hits” (cont’d)
• Use fewer or smaller images to keep page load times down.
• Provide links to complementary pages.
• Arrange for inbound links from other Web sites which are used by some
search tools to determine a Web page’s ranking or relevance.
• Periodically review search engine results
• Examine competitors site, including meta tags

Public Relations
• A public relations effort is one of the more cost-effective marketing
tools.
• Part of the art of a public relations effort is writing effective press
releases and sending those releases to the appropriate destinations at
just the right time.
• There are many businesses that specialize in providing public relations
services.

Customer Communications
• Direct communications with potential customers is important.
• Key thoughts: interactive, immediate, optional (opt-in vs. opt-out)
• Usenet newsgroups and forms represent a significant way to
disseminate news and respond to customer concerns.
– Portray as an industry leader
– Not for advertising, just informational

Affiliate Programs
• Affiliate Web sites are an important source of customer referrals.
• In an affiliate program, the E-Business pays a referral fee (usually a flat
amount) or commission (a percentage of the sale) on all sales sent to
the E-Business from another Web site.

Other Cost-Effective Promotion Methods
• Link exchanges
• Web rings
• Awards
• Word of mouth – goodwill marketing

E-Business Advertising
• Conventional advertising techniques may be necessary.
• Including a Web address and an email address in conventional advertising
materials is important.
• URLs are everywhere (UPS)
• This will “drive” potential customers to the Web site and promote brand
awareness.
• Web based advertising can be purchased from a number of popular portal
sites.
• Banner Ads – priced according to number of impressions (viewings)
• Click-through rate - % of viewers who click on a banner ad to view the
advertised web site

Benchmarking a Web Site
• A benchmark is a performance-based objective for a business’s Web
site.
• The process:
– Determine the goals (increase sales, reduce costs)
– Set the benchmarks
– Measure the results
– Draw reasonable conclusions

Measuring Web Site ROI
• Traditional financial measures available include ROI.
• Look at customer satisfaction and intangible benefits.

Online Measurement Tools
• Web metrics – measuring web site performance
• Web servers record all of the events that they process to files called log
files.
• A careful examination of these log files can reveal much about a Web
site’s effectiveness.
• Analysis software is available to examine logs.

Logging and Tracking
• Some of the information gained will be:
– Number of visitors
– Number of page views
– Views per visitor (how deep visitors are going)
– IP addresses of visitor – approx locations
– Referring URL’s
– Browser type
– Conversion rate (dividing # of orders by # of visitors)
– Errors
– Return visitors

Web Metrics
• Third-party analysis tools
• Click trail – the path a viewer takes on a Web site
• Sticky web sites – Web sites whose content keeps visitors coming back
again and again without relying on advertising to bring them back
• Web site traffic audit providers – third party that validates web site
traffic info (amount, type, etc.)
– Media Metrix, Nielsen/NetRatings

Digital Marketing
• 90% of Indian brands spend upto 15% of their marketing budgets on
digital marketing
• 32% of Indian brands have dedicated digital marketing teams
• 23% of Indian brands have digital marketing budgets in excess of Rs. 1
million per annum
• 14% of Indian brands spend between Rs. 10- 20 million per annum for
digital marketing

Digital Marketing
• Customer Acquisition is the primary focus for majority (58%) of Indian
Marketers
• For 50% India Marketers, e-Marketing revenue contribution is above
10%
• 85% of the Marketers are tracking revenues generated through e-
Marketing activities for their business.
• 80% of India Marketers believe that integrated campaigns (Email,
Social and Mobile) can result in increase in conversion rates
• Social Media updates was the top choice for achieving maximum
customer engagement (46%) followed by email campaigns (28%)

Digital Marketing
• Social Media (66%) and Email marketing (53%) tops the list of
marketing activities being planned for 2016
• 45% of India Consumers respond positively to email offers (which is 3x
of US Consumer).
• For 2016 almost 50% of Indian Marketers will be increasing their
investments by 31%-50% in Email
• The acceleration in growth of subscribers is expected by 31% of
marketers, a 500% increase from 2015
• Indian Marketers show an increasing preference for Purchase History
to be axis for Email Marketing Segmentation

Changing Marketing Landscape
• Internet strategy integration
• Internet marketing metrics
• Big data
• Wireless networking
• Individual internet worth
• Web 2.0
• E-commerce
• Influencer marketing
• Evolution of the internet
• Internet of Things
• Personalization and customization

Why Ecommerce Business Has Become So Popular?
• As discussed earlier, the first and foremost cause behind the success
of ecommerce business is its reach.
• Ecommerce business operates on the internet platform and today with
the internet’s power, you could get far more customers than you could
by running an actual shop.

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